You'll need to sign in or create an account to connect with an expert.
Because the new vehicle is leased, you can't do it as a "trade in" on your tax return. You have to dispose of the old vehicle that you owned. The lease is not entered as an asset and depreciated (unless it was a capital lease, which vehicles are usually not). Your lease payment is a deductible expense if you use actual costs (usually better than mileage deduction for leased vehicles) and the deposit is usually prepaid lease payments. You do have to enter the leased vehicle information, just don't put it in the asset/depreciation section.
Because the new vehicle is leased, you can't do it as a "trade in" on your tax return. You have to dispose of the old vehicle that you owned. The lease is not entered as an asset and depreciated (unless it was a capital lease, which vehicles are usually not). Your lease payment is a deductible expense if you use actual costs (usually better than mileage deduction for leased vehicles) and the deposit is usually prepaid lease payments. You do have to enter the leased vehicle information, just don't put it in the asset/depreciation section.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
sammiihopee
New Member
chiefbisonhawk
New Member
chill63b-yahoo-c
New Member
Chilbig02
New Member
2b16ed5dacbc
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.